New car sales rose to 32 199 units last month from 30 825 in June, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Thursday.
It said in a statement this represented an improvement of 4,5%.
Year-on-year sales were, however, down by 13,8%. In July last year, 37 366 new cars were sold.
Overall sales, which include commercial and other vehicles, in July this year also declined on a year-on-year basis, from 56 475 to 52 879.
Naamsa said a combination of negative events during the past four months dampened new vehicle sales.
These included another interest rate increase in June and the introduction of stricter credit legislation.
These came at a time of record household-debt levels.
Registration difficulties because of problems with the new traffic information system also affected sales figures.
Naamsa said the demand for new commercial vehicles remained strong amid robust economic activity.
”For the remainder of 2007, the industry’s performance would depend on the overall momentum of the South African economy, the direction of interest rates and new vehicle price trends.”
Naamsa said it expected a further boost in sales from car purchases by rental companies.
General Motors South Africa was upbeat over its July sales.
Sales and marketing vice-president Malcolm Gauld said its figure of 7 820 new vehicles in July was the company’s ”best performance” this year. — Sapa